World Trade Organisation (WTO) negotiations
26 July 2006
1. The South African Government expresses deep regret at the announcement on 24
July 2006 that the Doha Development Round negotiations are suspended
indefinitely. This is a serious setback for multilateral rule making and, in
the absence of an early resumption of the negotiations, this will be a source
of growing instability in the global trading system, with negative
repercussions for global economic growth and international stability in the
medium to long-term.
2. Although there are several dimensions to the difficulties that led to the
breakdown, the core negotiating issues revolve around agriculture and the
inability or unwillingness of key members to redress, in any decisive manner,
highly distorting trade measures that frustrate the development ambitions of
developing countries. The breakdown of negotiations means that realisation of
the promise of the Doha Round to rebalance the global trading system more in
favour of developing countries is delayed indefinitely. Developing countries
remain locked into a trading system that continues to prejudice their trade and
development interests. This failure, if unchecked, constitutes a breach of many
laudable commitments, and will diminish the chances of meeting the Millennium
Development Goals the international community has set itself.
3. In the absence of an early resumption of the negotiations, the international
trading system itself will confront a series of dangers: loss of legitimacy;
irrelevance as bilateral trade arrangement proliferate; an intensification of
litigation and disputes especially in agricultural trade; and the growing
threat of protectionism. Bilateral arrangements between unequal partners
threaten unbalanced outcomes and will contribute to growing complexity in the
trading system along with trade and investment diversion away from those
members that are currently most marginalised from such flows, particularly
those in Africa.
4. WTO members need to reflect on these scenarios and also consider the
enormous amount of effort expended since the launch of negotiations at Doha in
November 2001. Indeed, it is our view that a great deal of technical and
political work has been accomplished including a clearer definition of the
architecture of possible agreements across the negotiating agenda. We should
not lose sight of the fact that the WTO membership has never been closer to
such an ambitious outcome as it is now.
5. The South African Government thus urges all members to recommit themselves
to the multilateral system and the Doha Round and explore all options that
could lead to an early resumption of the negotiations to achieve the
development promise agreed in the Doha Declaration.
Contact:
Henriette van der Merwe
Tel: (012) 394 1640
Cell: 082 572 8184
Bongani Lukhele
Tel: (012) 394 1643
Cell: 083 291 8689
Bethuel Mnguni
Tel: (012) 394 1647
Cell: 083 624 8888
Donavan Jacobs
Tel: (012) 394 1641
Cell: 082 751 1078
Please address all your media enquiries to: mediarelations@thedti.gov.za
Issued by: Department of Trade and Industry
26 July 2006
